CFM46500 - Deemed loan relationships: repos: tax rules: back to back repos
Treatment of 바카라 사이트˜back to back바카라 사이트™ repos
In a 바카라 사이트˜back to back바카라 사이트™ repo, a financial trader that has bought securities under a repo sells them on under a repo to one or more persons. This is done, for instance, to profit from the spread between bid and ask repo interest rates, i.e. the interest receivable on the purchase (creditor) transaction being higher than the interest payable on the sale (debtor) transaction. The spread will be wider if the securities acquired under the purchase become 바카라 사이트˜special collateral바카라 사이트™ (see CFM46130).
No tax adjustments will normally be required to a financial trader바카라 사이트™s accounting profits in respect of back to back repos, including where a holding acquired under a single creditor repo is the subject of more than one debtor repo (or where a holding acquired under more than one creditor repo is the subject of a single debtor repo). This is subject to general rules requiring adjustments, such as the 바카라 사이트˜interest long stop바카라 사이트™ (CFM35800).